New Jersey Temporary Worker Protections for Employers

Overview of the Temporary Workers' Bill of Rights

New Jersey's Temporary Workers' Bill of Rights, signed into law in February 2023 with key provisions effective August 5, 2023, provides significant protections for temporary workers placed by staffing agencies. The law applies to temporary help service firms and their third-party clients in designated industries, initially covering specified occupational classifications.

Both staffing agencies and client companies share compliance responsibilities under the law, making it essential for employers who use temporary staffing services to understand their obligations.

Equal Pay and Benefit Requirements

The law requires that temporary workers be paid at least the same average rate of pay and equivalent benefits as permanent employees of the client company performing the same or substantially similar work. If equivalent benefits are not provided, the temporary worker must receive a cash equivalent added to their hourly rate.

This equal pay requirement represents a significant shift from the common practice of paying temporary workers at lower rates than permanent employees. Both the staffing agency and client employer can be held jointly and severally liable for violations.

Disclosure and Transparency Obligations

Staffing agencies must provide temporary workers with a written notice at the time of assignment that includes the name and address of the staffing agency and client company, the job classification and tasks, the wages and benefits, the work schedule, the length of the assignment if known, and any required equipment or protective clothing.

The notice must be provided in English and, if requested, in the temporary worker's primary language. Agencies must also provide itemized pay statements each pay period that show hours worked, rate of pay, gross pay, deductions, and net pay.

Anti-Retaliation and Enforcement

Employers may not retaliate against temporary workers who exercise their rights under the law, file complaints, or participate in investigations. Retaliation includes discharge, demotion, suspension, reduction in hours, and any other adverse employment action.

The New Jersey Department of Labor and Workforce Development enforces the law and may investigate complaints, issue citations, and impose penalties. Violations can result in penalties ranging from $500 per violation for first offenses to $1,000 per violation for subsequent offenses, plus potential liability for back pay, liquidated damages, and attorneys' fees.

Practical Steps for Compliance

Client employers who use temporary staffing services should review their agreements with staffing agencies to ensure compliance with the equal pay and disclosure requirements. Companies should provide staffing agencies with the information needed to calculate equivalent pay rates and benefits. Auditing temporary worker placements to verify compliance with wage parity requirements helps prevent liability.

Staffing agencies should develop compliant disclosure templates and train staff on notification requirements. Both agencies and client employers should maintain records demonstrating compliance for at least six years as required by the law.